5 reasons why small businesses must have a current account

Posted on Friday, March 17th, 2023 | By IndusInd Bank

India’s ever-growing business landscape has created a highly competitive environment for small businesses. With a large number of startups and small businesses vying for market share, it has become increasingly challenging for small businesses to differentiate themselves and succeed. Hence, managing finances effectively has become extremely critical for small businesses to survive this cut-throat competition and stay afloat.

Small businesses typically operate with limited resources and face significant financial challenges, such as cash flow management, debt management, and managing expenses. Effective financial management is essential for small businesses to maintain a healthy cash flow, allocate resources efficiently, and invest in growth opportunities. In addition, effective financial management can help small businesses build a strong credit history, making it easier for them to obtain financing and access other resources. Ultimately, small businesses that manage their finances effectively are more likely to survive the competitive environment, grow, and thrive.

A current account can be an excellent tool for small businesses to manage their finances effectively. A current account is a type of bank account that enables individuals and businesses to carry out day-to-day business financial transactions. The current account provides businesses with a range of features, such as cheque facilities, overdraft facilities, and online banking, which can help businesses manage their cash flow efficiently. With a current account, small businesses can receive payments from customers, make payments to suppliers, and transfer funds between accounts easily. They can also monitor their transactions closely, track expenses, and reconcile accounts quickly. Furthermore, a current account can provide businesses with a detailed record of their financial transactions, which can help them prepare accurate financial statements and tax returns. Let’s explore the same in detail.

5 reasons why small businesses must have a current account

1. Better Cash Flow Management: A current account helps small businesses manage their cash flow more effectively. With features such as overdraft facilities and cheque facilities, businesses can manage their expenses and receive payments from customers in a timely manner.

2. Increased Efficiency: A current account provides online banking facilities, which can save them time and increase efficiency. Transactions can be done quickly and easily, allowing small business owners to focus on other aspects of their business.

3. Access to Credit Facilities: Current accounts can provide small businesses with access to credit facilities, which can help them manage unexpected expenses and invest in growth opportunities. Banks may offer overdraft facilities or credit cards linked to current accounts, providing businesses with a source of funding.

4. Accurate Record-Keeping: Current accounts provide businesses with a detailed record of their financial transactions, making it easier to track expenses, reconcile accounts, and prepare financial statements and tax returns.

5. Separation of Personal and Business Finances: By having a dedicated current account for their business, small business owners can keep their personal and business finances separate. This makes it easier to track business expenses, file taxes, and maintain accurate financial records. It can also help prevent confusion or errors when managing finances, reducing the risk of financial difficulties or legal issues down the line.

5 reasons why IndusInd Bank Current Account is the right choice for small businesses

In today’s fast-paced digital world, small businesses need a banking partner that can provide them with reliable, efficient, and innovative banking solutions. IndusInd Bank Current Account is an excellent choice for small businesses looking for a banking partner that understands their unique needs and offers comprehensive banking solutions. Here are five reasons why IndusInd Bank Current Account is the right choice for small businesses:

1. 100% Digital Account Opening: IndusInd Bank Current Account can be opened entirely online using Video KYC. This makes it easy and convenient for small businesses to open a current account without visiting a bank branch.

2. The All-In-One Indus Merchant Solutions App: IndusInd Bank’s Indus Merchant Solutions App is an excellent tool for small businesses to track, manage, and grow their sales on-the-go. With 24X7 access to account details, auto-settlement of payments every morning, and a digital ledger, the app makes it easier for small business owners to manage their finances and stay on top of their sales.

3. Multiple Payment Solutions: IndusInd Bank Current Account provides small businesses with multiple payment solutions, allowing them to accept payments seamlessly via QR Code, UPI, and POS Machine. This makes it easy for customers to pay for products & services and ensures that small businesses can receive payments in a hassle-free and efficient manner.

4. Doorstep Banking: IndusInd Bank Current Account offers doorstep banking services, such as cheque/cash pick and drop, which saves time for small business owners. This means they can focus on growing their business and meeting customer needs, rather than worrying about banking logistics.

5. Higher Transaction Limits: IndusInd Bank Current Account like Indus Freedom Current Account provides higher transaction limits so that they can scale their operations and grow their business without any restrictions.

In conclusion, a current account is a crucial aspect of any business as it helps to manage daily transactions, streamline payment and collection processes, and utilize various free banking services. As a solopreneur, freelancer, or owner of a small home-based business, a current account can prove to be an asset. To open a current account digitally with IndusInd Bank – the perfect banking partner for your business, click here.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.